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Despite its economic strength, the EU's influence in foreign affairs is limited mainly because:

Athe EU possesses no armed forces at all
Bthe EU has no common currency
Cthe EU is excluded from the WTO
Dmember states retain their own, sometimes conflicting, foreign and defence policies
Answer & Solution
Correct answer: D. member states retain their own, sometimes conflicting, foreign and defence policies
EU members keep their own, often conflicting, foreign and defence policies (e.g., over the Iraq invasion), limiting unified EU action.
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